Cryptocurrency analyst Ali Martinez has identified a potential breakout for Cardano (ADA), suggesting that the current consolidation phase could lead to ADA surpassing the $0.45 resistance level by the first week of December.
Martinez attributes the ongoing movement in ADA to the conclusion of the consolidation period that ensued following the decline of Bitcoin and the 2022 collapse of Terra Luna along with its stablecoin UST.
Speculating on the future price trajectory of Cardano, Martinez anticipates a short-term bullish trend that could propel ADA to $0.75 by the end of December, aiming ultimately for the $1 mark. Currently, ADA is confined within a price range of $0.25 to $0.47, persisting since September 2022.
Examining ADA’s weekly chart, Martinez notes a consolidation pattern reminiscent of the 2018-2020 period, devoid of a crisis-induced drop that affected global financial markets. During that earlier time frame, ADA reached lows of around $0.015. Post-pandemic crash, ADA experienced a remarkable surge of 2,984%, reaching a peak of $3.10. However, this peak was short-lived due to the decline of BTC and the ongoing financial turmoil in the U.S.
related: Cardano (ADA) TVL Growth Soars to New Highs at $250 Million
If Martinez’s projections hold true, ADA could witness a doubling of its current value in a matter of weeks. As of the latest update, ADA is trading at $0.3665, reflecting an 88% decrease from its historical peak.
Cardano’s upward momentum is bolstered by positive developments and increased adoption. Santiment reports a surge in activity in old ADA wallets, while DefiLlama data reveals that the total number of ADA addresses is nearing its historical high of 4.46 million. Active addresses, transaction volume, and total value locked (TVL) have all experienced growth, surpassing $262.08 million, a level unseen since March 2022.
In conclusion, both technical analysis and on-chain indicators signal sustained growth for Cardano in the coming months. The question remains: Can ADA break free from the streak it has been experiencing since 2022?
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